SS&C (SSNC) Q2 2025 Earnings Call Transcript

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Date

Wednesday, July 23, 2025 at 9:00 p.m. ET

Call participants

Chairman and Chief Executive Officer — Bill Stone

President and Chief Operating Officer — Rahul Kanwar

Chief Financial Officer — Brian Schell

Head of Investor Relations — Justine Stone

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Takeaways

Adjusted revenue-- $1.537 billion in GAAP revenue for Q2 2025, up 5.9% year over year on a non-GAAP basis, driven by GlobeOp, GIDS, acquisitions, and FX.

Adjusted EPS-- $1.45 in adjusted diluted EPS for Q2 2025, representing a 9.8% increase (non-GAAP) compared to Q2 2024.

Record adjusted consolidated EBITDA-- Adjusted consolidated EBITDA was $600.4 million for Q2 2025, up 7.4% on an adjusted basis, with an adjusted consolidated EBITDA margin of 39% and a 50 bps year-over-year expansion in adjusted consolidated EBITDA margin.

Adjusted organic revenue growth-- Adjusted organic revenue growth on a constant currency basis was 3.5% for Q2 2025.

Recurring financial services revenue growth-- Recurring revenue grew 3.9% in Q2 2025, including software-enabled services and maintenance.

International growth-- Strong in Europe, Australia, and the Middle East across multiple business units.

Client retention rate-- Retention rate remained stable at 97% in Q2 2025.

Cash from operating activities-- Cash from operating activities (GAAP) was $645.1 million for the first six months of 2025, up 14% year over year for the period ended June 30, 2025, with cash flow conversion at 88% for the first half of 2025.

Share repurchases-- 3.4 million shares repurchased for $269 million at an average price of $77.99 in Q2 2025; authorization increased to $1.5 billion.

GlobeOp organic growth-- 7.3%, led by double-digit gains in private markets and retail alternatives segments.

GIDS performance-- Continued client wins and high professional services delivery volume.

Health segment organic growth-- Organic growth for the Health segment was flat year over year in Q2 2025, with ongoing execution on client sales cycles.

Viteos client wins-- 30 new clients secured in Q2 2025, with two-thirds as cross-sells, with historical seasonal weighting toward the back half of the year.

AI strategy execution-- First AI agent sale completed, reducing client's manual effort by up to 80% and increasing processing speed by 3x.

Capital expenditures-- Expected to be 4.1%-4.5% of revenues for fiscal 2025 (period ending Dec. 31, 2025), primarily targeted toward R&D and geographic expansion.

Leverage-- Net leverage ratio was 2.72x as of Q2 2025 with $6.4 billion in net debt as of Q2 2025 and $2.4 billion in consolidated EBITDA for the last twelve months ended June 30, 2025.

Q3 2025 guidance-- GAAP revenue is expected to be between $1.525 billion and $1.565 billion for Q3 2025; organic revenue growth of 4.5% at the midpoint for Q3 2025 and fiscal 2025; adjusted diluted EPS is expected to range from $1.44 to $1.50 for Q3 2025.

Full-year 2025 guidance raised-- Revenue target is $6.143 billion to $6.243 billion for fiscal 2025; organic revenue growth at the 4.5% midpoint for the full year; adjusted diluted EPS is $5.82 to $6.06 for fiscal 2025, up $0.10 at the midpoint for adjusted diluted EPS guidance for the full year.

Calistone acquisition-- Definitive agreement signed; Management expects the Calistone acquisition to be accretive to revenue growth, EBITDA margin, and EPS within twelve months post-close.

Seasonality-- Management indicated Q4 is typically strongest for revenues and EBITDA margin due to software sales and revenue recognition patterns, resulting in higher revenue and margin in Q4.

Summary

SS&C Technologies Holdings(NASDAQ:SSNC) reported its highest quarterly adjusted consolidated EBITDA to date in Q2 2025 while raising full-year revenue and earnings guidance for 2025. Management cited broad-based international growth and high retention as factors offsetting flat Health segment results and recent macroeconomic pressure in Intralinks during Q2 2025. The company highlighted AI integration milestones, including its first AI agent client win, and announced a significant share repurchase authorization increase. Near-term revenue guidance assumes ongoing disciplined investment in R&D, with capital expenditures remaining well above historical levels to drive continued product and geographic expansion.

CEO Stone said, "Our retention rate remained stable at 97% in Q2 2025," underlining consistent client engagement metrics.

The company forecasts 4.5% organic revenue growth at the midpoint for both Q3 2025 and the full year 2025, with no change to this outlook despite Q2 outperformance.

Guidance includes no revenue or EPS impact from the pending Calistone acquisition for the full year 2025, as the deal is expected to close in Q4 and be accretive within twelve months.

CFO Schell stated, "Net interest expense for Q2 2025 was $106 million, a decrease of $8 million, primarily reflecting lower short-term interest rates."

Chairman Stone described capital allocation priorities as ongoing investment in technology and services alongside share repurchases and opportunistic M&A.

Industry glossary

GIDS: Global Investor and Distribution Solutions, a business unit focused on providing investment management and distribution services technology and solutions.

GlobeOp: SS&C’s fund administration and outsourced services business, especially referenced for private markets and alternatives.

Viteos: SS&C’s class action services business, offering solutions for claims processing and client settlements.

Blue Prism: An SS&C-owned platform for robotic process automation and AI-driven digital workforce solutions.

DMI: Digital Messaging Infrastructure, a blockchain-native platform associated with Calistone for post-trade fund processing and messaging.

DealCenter: SS&C’s new AI-enabled transaction platform designed to improve win rates in deal-making activities.

Full Conference Call Transcript

Operator: Ladies and gentlemen, thank you for standing by. Today's conference call will begin momentarily. Until that time, your lines will again be placed on music hold, and we thank you for your patience. Ladies and gentlemen, thank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the SS&C Technologies Holdings, Inc. second quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad.

If you would like to withdraw your question, press star one again. Thank you. And I would now like to turn the conference over to Justine Stone, Head of Investor Relations. You may begin.

Justine Stone: Welcome, and thank you for joining us for our Q2 2025 earnings call. I am Justine Stone, Investor Relations for SS&C Technologies Holdings, Inc. With me today is Bill Stone, Chairman and Chief Executive Officer, Rahul Kanwar, President and Chief Operating Officer, and Brian Schell, our Chief Financial Officer. Before we get started, we need to review the safe harbor statement. Please note that various remarks we make today about future expectations, plans, and prospects, including the financial outlook we provide, constitute forward-looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995.

Actual results may differ materially from those indicated by these forward statements as a result of various important factors, including those discussed in the risk factors section of our most recent annual report on Form 10-K, which is on file with the SEC and can also be accessed on our website. These forward-looking statements represent our expectations only as of today, July 23, 2025. While the company may elect to update these forward-looking statements, it specifically disclaims any obligation to do so. During today's call, we will be referring to certain non-GAAP financial measures.

A reconciliation of these non-GAAP financial measures to comparable GAAP financial measures is included in today's earnings release, which is located in the Investor Relations section of our website, www.ssctech.com. I will now turn the call over to Bill.

Bill Stone: Thanks, Justine, and welcome, everyone. Our second quarter results include record adjusted revenue of $1,537.8 million, up 5.9%, and adjusted earnings per share of $1.45, a 9.8% increase. We delivered record adjusted consolidated EBITDA, passing $600 million in the quarter for the first time, up 7.4%, resulting in a quarterly adjusted consolidated EBITDA margin of 39%. Second quarter adjusted organic revenue growth was 3% with performance driven by GlobeOp, GIDS, and WIN businesses. GlobeOp organic growth of 7.3% was driven by double-digit growth in private markets and retail alternatives. GIDS continues to win key clients and deliver high-level professional services. Health finished the quarter with flat organic growth.

Q2 financial services recurring revenue growth was 3.9%, which includes software-enabled services and maintenance revenue. Internationally, we are seeing strength in Europe, Australia, and the Middle East spanning multiple business units. This broad success reflects a positive trend of increased international win rates, attributable to the investments we have made over the past several years and our ability to provide increasingly sophisticated services. Overall, we deliver our service with a client-focused approach, and our retention rate is stable at 97%. For the six months ended June 30, 2025, cash from operating activities was $645.1 million, up 14% year over year. In Q2, we bought back 3.4 million shares for $269 million, at an average price of $77.99.

We will continue to buy back shares opportunistically and recently grew our share repurchase authorization to $1.5 billion. We are continuously investing in our AI strategy. We believe some of our most significant competitive advantages lie in partnering Blue Prism with our business units to identify workflow, build new AI agents, and deploy them internally. This quarter, our approach successfully resulted in our first AI agent sale to an insurance conglomerate in the Midwest. The client processes hundreds of credit agreements monthly, and the AI agent reduces manual effort by up to 80%, speeds up processing by 3x, and improves accuracy to 99% plus. We believe this win is indicative of future opportunities across our 22,000 strong client base.

I will now turn it over to Rahul to discuss the quarter in more detail.

Rahul Kanwar: Thanks, Bill. We had a solid second quarter with 3.5% organic revenue growth and 50 basis points of margin expansion year over year. Our fund administration business, GlobeOp, continues to show strength with private markets growing over 10%, driven by the complexity of credit and hybrid funds as well as family offices. Retail alternatives, while still a smaller part of this business, is growing 20% with a substantial runway. Viteos, our class action services business, won 30 new clients in Q2, with two-thirds of them being SS&C client cross-sells. Our newer software solutions continue to gain traction. Genesis is well-positioned to support both new and existing customers with multiple implementations underway.

Our most recent client go-live was a $75 billion plus bank trust in the Midwest where we replaced a competitor. Similarly, Singularity has had recent success winning large insurance companies. We are focused on continuing to enhance asset coverage and functionality and are launching new features in bank loans, commercial mortgage loans, and enhanced income monitoring tools. We have noted previously that the strength in our business and the diversification of our revenue across product lines and types of customers often allows us to overcome macroeconomic challenges that may arise and still perform in a predictable way.

We proved that this quarter with success, despite Intralinks having some macroeconomic challenges, including declines in global deal volume and active deal flow in Q2. Early indicators do show activity is picking up in the second half of the year, and our brand new platform DealCenter combines the power of AI with an enhanced user experience and increases our win rates. With that, I will turn it over to Brian to walk through the financials.

Brian Schell: Thanks, Rahul, and good day, everyone. Unless noted otherwise, the quarterly comparisons are to Q2 2024. As disclosed in our press release, our Q2 2025 GAAP results reflect revenues of $1.537 billion, net income of $181 million, and diluted earnings per share of $0.72. Our adjusted non-GAAP results include revenues of $1.538 billion, an increase of 5.9%, and adjusted diluted EPS of $1.45, a 9.8% increase. The adjusted revenue increase of $85 million was primarily driven by incremental revenue contributions from GlobeOp of $28 million, GIDS of $15 million, acquisitions of $21 million, and a favorable impact from foreign exchange of $14 million. As a result, adjusted organic revenue growth on a constant currency basis was 3.5%.

Adjusted consolidated EBITDA was $600.4 million, reflecting an increase of $42 million or 7.4%, with a margin of 39%, a 50 basis point expansion. Note that EBITDA of $600.4 million is a quarterly record high for SS&C Technologies Holdings, Inc. Net interest expense for Q2 2025 was $106 million, a decrease of $8 million, primarily reflecting lower short-term interest rates. Adjusted net income was $366 million, up 10.2%, and adjusted diluted EPS was $1.45, an increase of 9.8%. Our effective non-GAAP tax rate was 24%. Note, for comparison purposes, we have recast the 2024 quarterly adjusted net income to reflect the full-year effective tax rate of 23.1%.

Cash flow from operating activities grew 14%, which was driven by growth in earnings. Our year-to-date cash flow conversion was 88%, compared to 85% last year. SS&C Technologies Holdings, Inc. ended the second quarter with $480 million in cash and cash equivalents and $6.9 billion in gross debt. SS&C's net debt was $6.4 billion, and our last twelve-month consolidated EBITDA was $2.4 billion, resulting in a net leverage ratio of 2.72 times. As we look forward to the third quarter and the remainder of the year with respect to guidance, we will continue to focus on client service and assume that retention rates will be in the range of our most recent results.

We are changing to manage our business to support our long-term growth and manage our expenses by controlling and aligning variable expenses, increasing productivity, improving our operating margins, and effectively investing in the business through marketing, sales, and R&D. Specifically, we have assumed in our guidance interest rates to remain at current levels, an effective tax rate of approximately 24% on an adjusted basis, capital expenditures to be in the 4.1% to 4.5% of revenues, and no impact related to the Calistone acquisition. For the third quarter of 2025, we expect revenue to be in the range of $1.525 billion to $1.565 billion, with 4.5% organic revenue growth at the midpoint.

Adjusted net income is expected to be in the range of $364 million, with interest expense excluding amortization of deferred financing costs and original issued discount in the range of $101 to $103 million. Diluted shares are expected to be in the range of 252.5 million to 253.5 million, and adjusted diluted EPS is expected to be in the range of $1.44 to $1.50. For the full year 2025, we are raising our top-line guidance by $15 million at the midpoint and now expect revenue to be in the range of $6.143 to $6.243 billion, with 4.5% organic revenue growth at the midpoint. For the full year 2025, we are also raising our earnings guidance.

Specifically, we expect adjusted net income to be in the range of $1.462 to $1.542 billion, diluted shares in the range of 251.5 to 254.5 million, adjusted diluted EPS in the range of $5.82 to $6.06, up $0.10 at the midpoint, and cash from operating activities to be in the range of $1.479 to $1.559 billion. Our 2025 guidance reflects our solid results in the first half of 2025, with a continued positive outlook for the remainder of the year. And now back to Bill.

Bill Stone: Thanks, Brian. On Monday, we announced the definitive agreement to acquire Calistone, expected to close in Q4 of this year. We are excited about the attractive geographies, additional capabilities that we can provide in the ETFs, digital assets, and money market products, and cross-sell opportunities. The acquisition is accretive to revenue growth, EBITDA margin, and will be EPS accretive within twelve months. This is in line with our capital allocation strategy of finding high-quality businesses which are a strategic fit. I will now open it up for questions.

Operator: Thank you. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your questions, simply press star one a second time. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. To be able to take as many questions as possible, we ask that you please limit yourself to one question and one follow-up. And our first question comes from the line of Jeff Schmitt with William Blair.

Your line is open.

Jeff Schmitt: Hi. Thank you. On the Calistone deal, could you discuss the revenue synergy potential here? You called out some cross-selling opportunities. Where do you see the biggest cross-selling opportunities, and could you quantify it at all?

Bill Stone: Well, it is still early. I would not say that we have anything that I can pinpoint. But they have 4,500 clients, and we have probably 10,000 that could be addressable with those 4,500 in things like crypto and other digital assets, as well as ETFs. They are very strong in ETFs, and we have a pretty nice ETF business ourselves. But we think the cross-selling and upselling in that space will be pretty attractive. We would expect Calistone, which has been growing in excess of 10%, closer to 15% for the last several years, to have an opportunity to perhaps accelerate that.

Jeff Schmitt: Okay. And then capital expenditures have been over 4% of revenues the last two years. You are expecting it again this year. Previously, they were more like 2% to 3%. I was just curious how much of that is going to higher maintenance CapEx versus investments in growth.

Bill Stone: Well, I would say that we have a large suite of technology products, and some of those products and services take R&D dollars. Also, we are moving into different geographies. We have had considerable success in Australia, and we built software specifically for that market. We do that across any number of our geographies and any number of our product suites. As Rahul said, we have significant development in private assets and retail alternatives in our GlobeOp division, and we also have brought out Genesis in our wealth and investment technology today. We are also still investing in DelaneyRx, and we have what we think are lots of opportunities.

Jeff Schmitt: Okay. So it sounds like more investments in growth. Should we expect it to stay up at these higher levels going forward?

Bill Stone: Well, Anthony Chiappa, who is our CTO, thinks it will. As much as we try to slow him down, technology is our seed corn, so we have to be careful that we do not cut off our nose to spite our face. We are going to continue to invest in our business, and we are generating lots of cash, paying down debt, buying back stock, and looking at acquisitions. But we are not going to starve our development teams or our service teams.

Jeff Schmitt: Great. Thank you.

Operator: And our next question comes from the line of Alexei Gogolev with JPMorgan. Your line is open.

Alexei Gogolev: Thank you very much for letting me ask a question. First of all, Brian, organic growth guidance for Q2 was ahead of your initial forecast, and yet you almost did not change your organic revenue outlook for the full year. It still sort of remains around 4.5%. Mechanically, this implies that you are now assuming slightly weaker organic growth in the second half. Were there any deals that were pulled forward that resulted in better performance in the quarter?

Brian Schell: No. I think just thanks for the question. I think if you look at the aggregate, if you look at the first half versus the second half, they are roughly equivalent as far as organic growth goes. Obviously, we continue to go against higher and higher quarterly numbers, which is obviously in 2024. So I think our expectations around the second half continue to be strong, all in into the overall aggregate for the 4.5% for the full year.

Alexei Gogolev: Thank you, Brian. And then another question related to acquisitions. I do not know. Maybe, Bill, this is perhaps for you. What would you see as a comfortable level of leverage should you see any potential attractive deals beyond the one that you announced earlier this week?

Bill Stone: Yeah. I think I would be comfortable for us to be in the mid-fours. We are at 2.72 now, so if you go into 4.50, that is almost two turns, which would be, you know, $4.8 billion. Plus, we would have some cash and be able to probably do a $5 billion acquisition. It depends on how good the acquisition is. We are not afraid to run the business with the demo because we are a very sticky business. We have great relationships with our clients. Our clients are growing, and we are in the sweet spots of financial services, we think.

Alexei Gogolev: Thank you, Bill.

Operator: And our next question comes from the line of Kevin McVeigh with UBS. Your line is open.

Kevin McVeigh: Great. Thank you, and congratulations on the results and the deal. Bill, I think you mentioned, within GIDS, a high level of professional services. Is there any way to think about, number one, what percentage of the revenues are professional services? And then is that a leading indicator? Is it professional services where you do the work and then ultimately it pivots to revenue? Is that a fair way to think about it? And typically, what is the lead time? I mean, I know some of the wins are getting bigger, but just are we thinking about that right?

Bill Stone: Well, I think the professional services are really to build out the service or build out the technology to meet the demands of any of these specific clients. Generally, that is a three to six-month process, and generally, we get paid for that three to six months, which is revenue. But then it usually turns into a services contract where we do the work, like with Insignia, we rebadged 1,300 people from Insignia to us. So, our charge is to help them grow and also to manage our expenses in a way that it becomes increasingly profitable.

Kevin McVeigh: That is helpful. And I think the other thing you mentioned was the EBITDA obviously at a record high. Any way to think about, and this may be more for Brian, just the pacing of the seasonality on that? You know, obviously, it is a Q2, which is a terrific outcome. But any shift in kind of the seasonality of the business and how we are thinking about the EBITDA over the course of the year?

Brian Schell: If you look at the course of the revenue growth over time, some of that will depend upon the revenue growth in the various business units and where it comes from. Obviously, with revenue recognition and 606, if you get a little bit more revenue coming in from some of those businesses, it obviously has a higher margin within that particular quarter in the time that it is booked. So you tend to get a little bit more of that revenue in Q4, so you gain a little bit of lift, all else being equal. For the core infrastructure expense, it does not really adjust the same way up, so you will get a little bit of that pickup.

So we just kind of look at it over the different lines of businesses and roll that up over time. And, obviously, as you continue to grow the revenues over different periods of time, you are just continuing to leverage your scale. Right? It is just, you know, our goal is to, optimally, grow the revenues faster than expenses, and you just have a little bit of that revenue seasonality in Q4, so you tend to get a little bit of pickup in the EBITDA margin.

Kevin McVeigh: Okay. Thank you.

Operator: And our next question comes from the line of Dan Perlin with RBC Capital Markets. Your line is open.

Dan Perlin: Thanks. Good evening. I was wondering if you could comment on what Viteos is actually growing at, like revenue growth rates, in the quarter kind of on a year-over-year basis. As we are kind of contemplating that rolling into organic growth in the fourth quarter?

Brian Schell: Yes. Go ahead. Now go ahead. Yeah. It is basically growing at a historical growth rate because I know that was obviously, we did not own it during the second quarter. So it is growing at, you know, kind of that low double-digit growth rate. You know, and we are going to see a seasonally like, and we said this on the prior call as well, is that when we look at Viteos, it can be very seasonal as well, right, as far as it can be very lumpy in any one quarter based on what is going on and clearing class action suits.

And when we look at historically, over the last, call it, five or six years, the frequency of the fourth quarter or the second half being the lumpiest of the full year. Over 50% of the time, you will see a higher percentage of the revenues weighted toward the back half of the year as courts tend to clear their dockets towards the end of the year versus the early part of the year. And this year is shaping up to be similar to one of those years, so we would expect to see an accelerated growth rate in the second half, similar to what they have done historically.

It was not necessarily the case last year, but more the case looking this year.

Dan Perlin: Got it. That is great. And then just, I guess, more philosophically, Bill, like, the Calistone deal here again, you have got an asset that is growing, I think, organically, you said ten plus percent. We just talked about Viteos growing low double digits. And maybe there is some lumpiness to it. But in aggregate, like, these are assets that have organic growth that is better than kind of your current run rate and margins that are not, like, big fixer-uppers, which are somewhat counterintuitive relative to what you have historically done over the years.

So I am just wondering if, like, is the tone from the top that, you know, you are going to point a lot more assets and capital into kind of expanding that organic growth trajectory as these assets kind of keep rolling in? Because it would seem as though that is a strategic move on your part, but I am not sure if it is entirely the focus point. I am just trying to get a sense there. Thank you.

Bill Stone: Yeah. You know, Dan, I think, of course, you know, I mean, you only need to get hit in the head about a thousand times before you decide that you guys really love organic revenue growth. You know, I like growth and I like earnings. You know, but we have a lot of opportunities where we find, you know, good teams like they have at Calistone, and, you know, we have known Julian Hammerson for several years and he is a very impressive guy. And I think that, you know, when we find that same thing that we had with, you know, with Michael McCreich and Pete Hanson at Viteos.

So, you know, it is finding the right mix and, you know, trying not to, you know, get too investment banker influenced as to what we should do. You know, we made over $600 million EBITDA this quarter, and, you know, we are well on our way to make more money in the second half than we made in the first half. And as Brian said, there is some seasonality, and, you know, we still sell some software too. So that generally is in the fourth quarter. And generally, in the last two weeks of the fourth quarter. So it is always the last two weeks of the quarter, but it is a larger chunk in Q4.

So I do not think that is going to change.

Dan Perlin: Got it. That is great. Thank you so much, Bill.

Operator: And our next question comes from the line of Peter Heckman with DA Davidson. Your line is open.

Peter Heckman: Hey. Good morning. Alright. Good afternoon, everyone. On Calistone, can you explain a little bit more what their funds network does? I did a little bit of work on the website, and I am not sure I am a hundred percent grasping it. Is there really a BPO function for things like post-trade processing and trade reconciliation? Or am I reading that incorrectly?

Bill Stone: That is a couple of the services that they provide, and they have a big network that really allows them to have straight-through processing but with very little manual intervention.

Peter Heckman: And on a multi-country basis, I think they are in 57 countries. That is the number.

Peter Heckman: Okay. And then I did not hear an update on the health solutions segment. Anything new there? And are we still thinking that, you know, we are in the process of kind of really marketing and selling the solution and thinking about, you know, incremental revenue or any real material revenue acceleration occurring, you know, maybe a year out from now. Is that how we should be thinking about it?

Bill Stone: Well, I think, Pete, that, you know, almost all of these health plans, Medicaid and Medicare, are all, you know, they begin in January 1. So, you know, really, you find out whether or not you won these deals and, like, I cover one. So that is the selling season is right now through the end of the year, and, you know, primarily you are not closing any deals in December because you have to get these people up and running on January 1. So it is just recognizing those dynamics in that business and then also recognizing that there is a they are lumpy.

You know, this is their whole business, and, you know, a small deal in health care is, you know, on Delaney or Amethyst would be, like, $5 million. You know, and the big one could be $100 million. But you have got to recognize that, you know, some of it is going to be the maturation of that selling and marketing process and then being able to really get some traction where people start singing the praises of having a brand new system and data and analysis at their fingertips. Versus, you know, we have had some of the CEOs that had major health care companies talk about two or three weeks to get the data in a usable form.

So we think there are a lot of advantages, and it is, you know, we make money in our health care business, we generate cash, and we think it is a huge opportunity. We have a new board member who lives in London, and he asked, like, it is not just the United States that needs health care solutions. So there is opportunity.

Peter Heckman: Okay. Good to hear. I appreciate it.

Operator: And our next question comes from the line of James Faucette with Morgan Stanley. Your line is open.

Michael Infante: Hi, guys. Thanks for taking our questions. Michael Infante in for James. I just wanted to ask a technical question. Calistone and specifically their DMI platform. I know that is blockchain native, and it is obviously still quite early. But any sense of the technical or commercial hurdles that would prevent you from routing a big chunk of SS&C administered flows through DMI over the next several years and maybe what that would mean from a cost savings perspective relative to Swift messaging.

Bill Stone: But, you know, that is something that we are looking at, and, you know, getting all of the technical aspects and all the specifications is one of the reasons you see it as 4.1% to 4.5% and what we spend on R&D. And, you know, we have people working in and Julian at Calistone is quite technical, and his team is quite technical. So we will have our technical teams together and we will do what is optimal for our clients, and I am sure that the scale that we bring is going to allow us to have, you know, better pricing.

Michael Infante: Got it. Helpful. Just a quick housekeeping follow-up on Viteos. I think you suggested last quarter that you were still working through some of the rev rec dynamics there. Which in and of itself, that asset is again seasonally concentrated into fiscal Q4. But do you have more visibility on what that rev rec looks like now? And are you still comfortable with that full-year range being $100 to $110 million of contribution? Thanks.

Brian Schell: I think we are getting, you know, we are definitely making progress on it as we get more history, and we have really good visibility into what is already, in effect, been adjudicated and is waiting to be released. So, yeah, we feel better about it. I would not say we are a hundred percent of the way there, but we are getting closer.

Bill Stone: Yeah. We operate with the different law firms that have won these cases and, you know, staying on top of them too so that they stay on top of the judges so that the judges release the funds. And that is when everybody gets paid.

Michael Infante: Got it. Thanks, guys.

Operator: And as a reminder, press star one if you would like to ask a question. And our next question comes from the line of Surinder Thind with Jefferies.

Surinder Thind: Thank you. So can you just provide kind of an update on Blue Prism's strategic direction, new functionality, and just kind of what you see in the pipeline at this point?

Bill Stone: Well, you know, we are really kind of rolling out, you know, kind of a case study of what we did. You know, we bought Blue Prism, I think, in, like, March, April of 2022, I think. And, you know, we have deployed several thousand digital workers and doing increasingly complex tasks. And we think that we have saved or at least not spent a couple hundred million dollars because of that investment. And as we show what we are doing with the AgenTek AI and Blue Prism, you know, we are starting to get some real interest as a solution for a lot of their manual issues. We remain optimistic that Blue Prism has a lot of runway.

But it is competitive, and it is Wild West out there. So you, you know, you have got to do this in a wise manner. And you have got to protect your client.

Surinder Thind: Got it. And then just kind of on the Intralinks piece and the whole idea of volumes, deal counts. How significant has the degradation been from the beginning of the year to now? And then maybe how you are thinking about the back half.

Rahul Kanwar: Yeah. I think the answer to both of those is related. There is a little bit of a lag. It is mostly, you know, so we have some leading indicators, the number of opportunities, the number of deals in the market, as well as what we have in bookings, which then translates to revenue. So I think most of what we are seeing now is we are seeing the early indicators of that revenue come back. So bookings are up, deal counts are up, things like that. There usually is a couple-month lag. We do expect, you know, some growth from this point in the back half of the year.

Surinder Thind: Got it. Meaning that you expect growth in the back half to be positive, like, in terms of numbers?

Bill Stone: Okay. Appreciate that.

Surinder Thind: Thank you.

Operator: And we have no further questions. So I will now turn the call back over to Mr. Bill Stone for closing remarks.

Bill Stone: Thank you, and thanks, everybody, for being on the call. We are working hard for our shareholders as we always do, and it is nice to present good results. We look forward to seeing you in October. Thanks a lot.

Operator: And ladies and gentlemen, this concludes today's call, and we thank you for your participation. You may now disconnect.

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